What to do in a Dispute

Dispute Management: A Seller's Guide

When a buyer reports a problem with an order, Dispute Management gives you a clear, fair process to respond. This guide explains what happens at each stage, how long you have to respond, and how disputes affect your payouts.

How a dispute reaches you

Dispute Management is integrated seamlessly into ReefnBid's platform messages. A buyer opens an issue from their order's messages. You'll be notified by email and in your dashboard. Most issues are resolved with a quick reply, so respond promptly to keep things moving.

The process follows three steps:

1. Connect directly. Before buyer escalates, work out the issue in the order's messages, whether that's a reshipment, a seller credit, partial refund, or another fair outcome.
2. ReefnBid mediates. If you can't agree, the buyer will escalate to have our team steps in. Direct buyer/seller chat is paused, and each side shares their account privately with us. We propose a resolution, and both parties confirm it before it's final.
3. Bank chargeback. In the rare case an issue reaches the bank, the card network sets an evidence deadline and the case is decided there. ReefnBid is no longer part of the dispute process.

How much time you have to respond

Responding on time matters. If you miss a deadline, the case is decided on what's already been filed.

Stage 1: Direct resolution between you and the buyer. While there is no hard deadline to respond to your customer, promptly responding to your customer's grievances will likely ensure a quicker resolution.

Stage 2: Formal case ruling. Once the buyer escalates to have us step in, you have 72 hours from the buyer's submission to file your case statement.

Stage 3: Bank chargeback. If buyer is not satisfied with our proposed resolution, they have the option to file a chargeback. Evidence is due to the bank by the deadline shown on the dispute (set by the card network). Submit your defense before it passes.

Responding to a dispute

• Reply quickly and clearly. Explain your side, share tracking, photos, packing details, or anything that supports the order.
• Watch for proposed resolutions. When ReefnBid proposes a resolution, you'll see Agree and Decline buttons. The dispute resolves only when both you and the buyer agree.
• Use the private mediation thread. During mediation, share your account with our team there. This keeps the process neutral.
• All evidence must come from ReefnBid Messenger or email. Seller is prohibited from providing customer support over text messages.

Staying on top of disputes

• Your dashboard shows an Active disputes indicator that turns red when one or more disputes need attention.
• The dispute list shows the Evidence due date for any chargeback so you don't miss a bank deadline.
• A banner appears across your dashboard when a proposed resolution is waiting for your Agree or Decline.

How disputes affect your money

There are two kinds of disputes, and they affect your money differently.

ReefnBid disputes (resolved on the platform): These are issues raised and settled through ReefnBid, by mutual agreement or an admin ruling.

• Payouts are tied to fulfillment. You aren't paid at checkout. Your payout releases when you fulfill the order, and while a dispute is open, fulfillment is paused, so that order's payout is held.
• You only bear your own share. If the outcome is a refund, ReefnBid absorbs its own commission and the sales tax it collected, so you're never billed for money you never received. No bank fees apply.

Bank chargebacks (resolved by the card network): There are four separate charges to understand. Each behaves differently:

• Processing fee - The payment processing fee on the original sale. This is never returned, even if there is no chargeback.
• Chargeback fee - Charged the moment a chargeback opens (around $15). Once a chargeback starts, this fee is never returned, win or lose.
• Disputed amount - The order amount the bank pulls back. Returned to you if you win; kept by the buyer if you lose.
• Counter fee - Charged whenever ReefnBid contests the chargeback on your behalf. Returned to you if you win; retained if you lose.

In short: winning returns the disputed amount and the counter fee, but the processing fee and the chargeback fee is never returned. This is why we'd rather resolve the issue with the buyer before they file. Beyond the direct financial loss and labor burden, a chargeback ratio that climbs above ~1% of transactions can trigger card network monitoring programs and jeopardize your ability to accept card payments going forward. ReefnBid always absorbs its own commission and the sales tax it collected.

Fulfillment during a dispute

• Orders with an open chargeback are paused so you don't ship into an unresolved dispute. If you try to fulfill, you'll see that fulfillment is paused.
• Once the dispute resolves in your favor, fulfillment and payout pick up right where they left off.

Tips for sellers

• Respond within 72 hours. Missing the window means the case is decided without your statement.
• Keep records. Tracking numbers, photos at packing, and clear item descriptions are your best defense.
• Resolve early. Most disputes settle fastest in Step 1, before mediation is needed.